Land degradation is continuing to occur in many different environmental conditions. This is because land use choice in a particular area always goes beyond the capability and suitability of that area for such type of land use. Traditionally, land use choice depends very much on the criteria used, but in essence it should embrace three different and sometimes conflicting aspects: productivity, workability and the environment. The decision criteria derived from environmental attributes that represent degradation potential will become important determinants for sustained use of the land.

The livelihood of the Himalayan people depends on rangeland-based livestock farming in Nepal. Above 2500 m altitude, the contribution of rangelands to livestock feed supply is more than 65%. Rangeland comprises about 11.5% of the total land resources of Nepal and over 98% are located in high mountains and Himalayan regions. Nepal is rich in biodiversity, with over 6500 species of flowering plants, including 180 species of grasses and legumes.

As carbon becomes a valuable commodity traded in markets for greenhouse-gas emissions, there will be incentives to adopt land uses that capture carbon payments as well as produce other marketable outputs, including biofuels. These production systems may be more sustainable than many of those in current use, but there is also the risk that the growing demand for biofuels will cause land degradation, deforestation and food scarcity.